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Business Model Metrics
Time:
1 hour
Complexity:
Phase:
Grow
User rating:
(3 Votes)
Business Model Metrics help you to monitor the performance of your business model. With Business Model metrics you can select measurable performance indicators in four categories: service quality, customer satisfaction, online potential and financial viability. Measuring and monitoring these indicators help you to understand how your business is doing and if you need to make adjustments.
Download the Business Model Metrics Cards to brainstorm about the metrics that are relevant for your business. Download the Example for SportsGym to get inspired and learn about the practical application of the cards.
How to use
When you want to innovate or grow your business model, it is important to be clear about what you want to achieve. With clear objectives you can define performance indicators or metrics to monitor the progress of these objectives. To be of practical use, the metrics have to be smart, i.e. specific, measurable, achievable, realistic and timely. The Business Model Metrics Cards help you to select smart metrics for your business model. With the selected metrics you can measure and monitor performance and progress of your business model.

Categories of metrics

There are several categories of metrics, measuring different aspects of a business model. Of course there are important financial metrics like revenues, costs and profit. But there are also metrics that you can use to monitor from other perspectives how your business model is doing.

Business Model Metrics consist of a card deck with 32 metrics divided over four categories:

  • Service quality: metrics about the quality of your service or products, for example brand awareness or percentage of defects;

  • Customer satisfaction: metrics about how satisfied your customers are with your product or service, for example Net promotor Score (NPS) or cross-sell ratio;

  • Online capability: metrics about how you are performing online, for example number of unique visitors or page views;

  • Financial viability: metrics about the financial performance of your business, for example profitability or return on investment.

Each card describes a metric and why it could be important to your business. It also describes how the metric can be measured and monitored in practice. Measurement can be based on:

  • Survey: simple question(s) to customers to gather quantitative customer data;

  • Interview / Focus Group: dialogue with customers to gather deeper customer insights;

  • Web / App analytics: analysis of how customers interact with your website or application;

  • Data from financial systems: analysis of cash flows, costs and revenues;

  • Data from order management systems: analysis of orders and fulfillment;

  • Data from production systems: analysis of production process and products;

  • Data from helpdesk systems: analysis of customer care.  

The Business Model Metrics Cards can be used individually but also by a group of people. The cards will stimulate and provoke discussion about how you can best measure the performance of your business model. Business model metrics help you to focus on what you want to achieve.

Business Model Metrics game

An existing business model or an business idea can be used as starting point. Let one of the attendees explain the (intended) business model. Each player is assigned one of the four categories and receives the eight cards belonging to that category. Each player gets five minutes to choose two cards that he or she feels would be best to measure the performance and progress of the business model. The players then put the cards on the table and briefly explain why they have chosen them. The metrics with the most convincing arguments can then be elaborated upon.
Downloads and Examples may currently only be available in English.
Inspired by
This tool is inspired by: Marikka Heikkil√§, Harry Bouwman, Jukka Heikkil√§, Sam Solaimani & Wil Janssen (2015). Business model metrics: an open repository, Inf Syst E-Bus Manage, DOI 10.1007/s10257-015-0286-3.